In Mariano Lim v. People of the Philippines, the Supreme Court reversed the conviction of Mariano Lim for violating the Anti-Fencing Law, Presidential Decree No. 1612. The Court ruled that the prosecution failed to prove beyond reasonable doubt that Lim knew or should have known that the Komatsu Road Grader he purchased was stolen. This decision highlights the importance of establishing all elements of fencing beyond a reasonable doubt and underscores the significance of a notarized affidavit of ownership in demonstrating a purchaser’s good faith.

Unraveling Intent: Did a Road Grader Sale Constitute Fencing?

The case began when Mariano Lim, proprietor of Basco Metal Supply, purchased a Komatsu Road Grader for P400,000.00. The grader, owned by the Second Rural Road Improvement Project (SRRIP) PMO-DPWH, was allegedly stolen. Lim was subsequently charged with violating the Anti-Fencing Law of 1979. The Regional Trial Court (RTC) convicted Lim, a decision affirmed by the Court of Appeals (CA). The central legal question was whether the prosecution had sufficiently proven that Lim knew or should have known the grader was stolen, an essential element of fencing.

The Supreme Court, however, disagreed with the lower courts’ assessment. The Court emphasized that in criminal cases, every circumstance favoring the accused must be considered. It meticulously examined the evidence presented and found critical deficiencies in the prosecution’s case. The Court underscored that the prosecution failed to conclusively prove that a theft had even occurred. This failure hinged on the fact that the prosecution’s primary witness, Engr. Gulmatico, relied heavily on hearsay evidence. His testimony regarding the theft was based on information received from third parties, none of whom testified in court.

“Sec. 36, Rule 130 of the Rules of Court provides that witnesses can testify only with regard to facts of which they have personal knowledge; otherwise, their testimonies would be inadmissible for being hearsay.”

Furthermore, the prosecution failed to sufficiently establish the DPWH’s ownership of the Komatsu Grader. While Engr. Gulmatico presented a Memorandum Receipt, it lacked crucial details like the date of acquisition and property number. This undermined the claim that the DPWH rightfully owned the equipment. The Court noted that even assuming a theft had occurred, the prosecution failed to prove that Lim knew or should have known the grader was stolen. This element of knowledge is critical for a conviction under the Anti-Fencing Law.

The Court addressed the lower courts’ reliance on the presumption that possession of stolen goods implies knowledge. It found that Lim had successfully rebutted this presumption by presenting a duly notarized Affidavit of Ownership from the seller, Petronilo Banosing. The affidavit, being a notarized document, carries a presumption of regularity. It serves as prima facie evidence of the truth of the facts stated within it.

“It is well settled that a document acknowledged before a notary public is a public document that enjoys the presumption of regularity. It is a prima facie evidence of the truth of the facts stated therein and a conclusive presumption of its existence and due execution.” (Ocampo v. Land Bank of the Philippines)

The Court noted the lack of conclusive evidence from the prosecution that would overturn this presumption. The Court also found that Section 6 of PD 1612, which requires a clearance or permit for selling used second-hand articles, was inapplicable in this case. This section applies specifically to stores or establishments engaged in the business of buying and selling goods obtained from unlicensed dealers and offering them for sale to the public. The prosecution failed to establish that Lim was engaged in such a business or that he intended to sell the grader to the public.

Additionally, the Court raised concerns about a violation of Lim’s constitutional right to be informed of the nature and cause of the accusation against him. The Information charged Lim with knowing that the grader was stolen. However, the trial court convicted him on the basis that he should have known, a different standard not explicitly stated in the Information. This discrepancy was deemed a violation of his due process rights.

In conclusion, the Supreme Court found that the prosecution failed to prove essential elements of the crime of fencing beyond a reasonable doubt. The Court emphasized the importance of concrete evidence and the protection afforded by a notarized affidavit in demonstrating a purchaser’s good faith. This ruling reinforces the principle that the burden of proof lies with the prosecution, and any reasonable doubt must be resolved in favor of the accused.

FAQs

What is the Anti-Fencing Law of 1979?	It’s a law (Presidential Decree No. 1612) that penalizes individuals who buy, receive, possess, keep, acquire, conceal, sell, or dispose of items they know to be derived from theft or robbery. The law aims to deter the disposal of stolen goods by making it risky for individuals to deal with such items.
What are the essential elements of fencing?	The elements include a crime of robbery or theft, the accused not being a principal or accomplice in the robbery or theft, the accused buying or possessing items from the crime, the accused knowing or should have known the items were from the crime, and the accused having intent to gain. All these elements must be proven beyond a reasonable doubt to secure a conviction.
What is the significance of a notarized affidavit of ownership?	A notarized affidavit of ownership is a public document that carries a presumption of regularity. It serves as prima facie evidence of the truth of the facts stated within it, including the seller’s claim of ownership. In this case, it helped rebut the presumption that Lim knew the grader was stolen.
When is a clearance or permit required for selling used second-hand articles?	A clearance or permit is required under Section 6 of PD 1612 for stores or establishments engaged in the business of buying and selling goods obtained from unlicensed dealers and offering them for sale to the public. The prosecution must prove that the accused meets these criteria for the provision to apply.
What is hearsay evidence?	Hearsay evidence is testimony or evidence offered in court that relies on statements made out of court by someone who is not present to testify. It is generally inadmissible because the person who made the original statement cannot be cross-examined.
What does it mean to be informed of the nature and cause of the accusation?	This is a constitutional right that requires the Information to clearly state the specific offense the accused is charged with, including all essential elements of the crime. The accused must be properly informed to prepare a defense and prevent conviction based on uncharged offenses.
What was the value of the grader?	The trial court assessed the value of the grader at P100,000 due to missing parts. However, Lim testified that he paid P400,000 for it. The value disparity supported Lim’s claim of good faith, as it indicated he believed in the seller’s representations.
What was the outcome of the case?	The Supreme Court reversed the lower courts’ decisions and acquitted Mariano Lim. The acquittal was based on the prosecution’s failure to prove the essential elements of fencing beyond a reasonable doubt.

This case serves as a crucial reminder of the stringent burden on the prosecution to establish every element of a crime beyond a reasonable doubt. It also underscores the protective role of a notarized affidavit in demonstrating good faith in commercial transactions. The ruling emphasizes that assumptions or presumptions cannot substitute for concrete evidence, especially when an individual’s liberty is at stake.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Mariano Lim v. People, G.R. No. 211977, October 12, 2016